How to Spend Less Than $200 per Motivated Seller Lead By Using The Radio
Radio is the leading reach platform. 93%, or 265 million over the age of 6, of Americans listen to AM/FM radio each week. And this trend isn’t slowing down soon, especially since 92% of the Millennial Generation listen to radio for a total of over 12 hours a week. For Kinsley Clecidor, who is a real estate investor, wholesaler, and agent, radio is his number on lead generator. In our recent conversation, he explained the rather humorous process of recording a radio ad and the astounding results he’ seen because of it.
How to Record a Radio Commercial
Kinsley got the idea to put out a radio ad from his partner. “I got my partner, it’s actually a broker, who got me a good deal on a radio commercial with a radio station we have here in Polk County and Lakeland.” The deal was a $650 to $800 a month subscription to maintain a normal, 1-minute ad that airs 3 to 5 times a day.”
Shooting a radio ad was an entirely new experience for Kinsley. He didn’t know what to expect, but he was rather confident going in. That changed abruptly. Kinsley recalls how he felt after his first recording: “I thought it sounded great coming out of my mouth. I [thought], ‘oh man this is it. I know I’m cool. I’ve got the style. I’ve got the lingo so I’m going to put this thing out there after the first hit. So [the producer] replayed it for me and I [thought] ‘oh my god, is that me? Is that how I sound?’…It sounded like I was dead.”
Moving forward after that first recording, the next few consisted of a continuous messing up. But fortunately, the producer was very helpful and encouraging. With a little editing magic, and 3 full hours later, Kinsley had a wonderfully sounding, 1-minute radio commercial that was ready to be spread out to thousands of distressed homeowners.
The Commercial’s Content – Call to Action
As for the content of the radio ad, Kinsley’s call to action was his phone number. His reasoning was that he didn’t “want anything in the middle. I wanted everything coming straight to me. They call me directly, [and] I answer my phone.” He is a huge proponent of always answering his phone, no matter what, which is a similar philosophy of this previous Best Ever Guest as well. “There is not a time where I don’t answer my calls at all because any call I get, whether it’s a real estate call or whatever, I see money. This has got to be money calling so let me answer money.”
Although, by blasting out your personal cell phone number to thousands of listeners, the amount of phone calls is sometimes overwhelming. Kinsley solves this problem by forwarding calls to a computer system that is available to him through is real estate office. “If I do get overwhelmed with calls, I will forward the calls over to the computer system. They will call in and they’ll leave a message and I’ll just call them back.”
But is the juice ($800 a month) worth the squeeze?
There is a reason why Kinsley was willing to endure 3 hours of recording, spend $800 a month, and be constantly bombarded with phone calls because he receives 50 to 100 calls from his radio commercial every month. Out of those calls, Kinsley will eventually close, on average, “5 of those a month. Closer to 10 if anything.” And for some of those remaining deals that he “can’t turn into a wholesale deal, being a licensed realtor gives [him] the opportunity to turn around and turn it into a listing.”
On the high end, Kinsley cost per lead is $160 ($800 / 5 deals) and $80 ($800 / 10 deals) on the low end. So as long as he is making more than a couple hundred dollars on the assignment fee or commission, everything else is pure profit!
Do you have a lead generation tactic that has a cost per lead anywhere near as low as the $80 to $160 that Kinsley gets from his radio commercial? If not, then it may be time to shuffle over to your local radio station and get started!
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action.